India is reportedly set to release a much-anticipated discussion paper on cryptocurrency regulation in June 2025, as the country looks to address the growing relevance of digital assets amid global momentum, particularly from the United States under President Donald Trump.
According to sources familiar with the matter, the paper will outline potential policy options for regulating crypto assets in India and is currently in its final drafting stages. The proposal is expected to take cues from the International Monetary Fund (IMF) and Financial Stability Board (FSB) synthesis paper and will seek public feedback on global best practices.
“The discussion paper on crypto assets is being given finishing touches,” said one of the persons cited, adding that it could be posted for public comments next month.
This move comes as India’s stance on cryptocurrencies remains ambiguous. While the country imposed a 30% tax on crypto gains in the FY23 Budget, the government clarified that this did not equate to granting legal status to digital assets.
India’s Crypto Stance: Between Taxation and Regulation
In a bid to monitor crypto-related transactions, India also mandated that crypto exchanges register with the Financial Intelligence Unit (FIU). However, there has yet to be a comprehensive legal framework governing crypto assets, Web3 startups, or blockchain companies in India.
The Reserve Bank of India (RBI) has consistently warned against cryptocurrencies due to their potential misuse for money laundering, terror financing, and market volatility. Instead, the RBI is pushing its Central Bank Digital Currency (CBDC) as a more secure, regulated alternative.
“India will take a call keeping in view its own national interest,” said a senior government official. “No knee-jerk decision would be taken in view of the wide ramifications of this industry.”
Industry Calls for Clear Crypto Policy
The move to release a formal crypto discussion paper has been welcomed by industry leaders who have long advocated for clarity on crypto regulation in India.
Sumit Gupta, co-founder and CEO of CoinDCX, said, “India to release the most-awaited discussion paper on crypto in June 2025! My sense is that it will cover the key risks associated with the sector and seek public comments to build further thoughts around crypto policy but no commitment on regulation yet.”
He added, “The release of this discussion paper will ‘finally’ provide opportunities to Indian crypto investors/industry players/media to provide comments/feedback on the sector.”
He also highlighted the ongoing FSB thematic peer review, launched in February 2025, which assesses how member and non-member countries are implementing the FSB Crypto Framework. The global progress report is due in October 2025.
“This decade belongs to Indian builders. Let’s make India the Web3 capital of the world!” Gupta added.
Ashish Singhal, co-founder and CEO of CoinSwitch, echoed similar sentiments, “It appears that the government will be releasing the much-awaited and long-pending discussion paper on cryptoasset regulations sooner rather than later. This is the time for the industry to work alongside government stakeholders on an enabling regulatory regime.”
“We not only need to addresses and mitigate the risks but also foster innovation, promote financial inclusion and ultimately protects consumers. We need to present sound arguments in favour of an enabling framework backed by data and empirical evidence wherever possible,” he said.
Global Influence: Trump’s Crypto Push Shifts Global Dynamics
A major catalyst in India’s changing outlook is the global momentum, especially from the United States’ new pro-crypto stance under President Trump. The Trump administration has not only expressed strong support for Bitcoin and digital assets but also made a bold move by pardoning Ross Ulbricht, the Silk Road founder.
Sunil Mittal, chairman of Bharti Group, said: “Look at the case with crypto now. Crypto, in the last six to eight, 10 weeks has started to move at a pace which has never been seen before, when the Trump administration has been supporting cryptocurrencies.”
“So far, the position was no… crypto will not be allowed. We will probably try our own digital currency. But I think with the US moving so fast, you need to have strong regulations, policies, look at what’s going on in the world, and then look at and see what impact it has,” he added.
The US has reportedly begun working on pro-crypto legislation and is setting up a strategic Bitcoin reserve. At a recent Bitcoin conference in Las Vegas, Vice President JD Vance encouraged the industry to keep pressure on Congress to pass crypto-friendly laws.
Final Thoughts
As Web3 adoption in India grows, this upcoming paper may finally set the tone for crypto regulation in India in 2025, giving builders, investors, and exchanges a clearer direction. With countries like Pakistan already launching Bitcoin reserves, India’s crypto community is hopeful that it too will embrace this evolving digital economy responsibly and strategically.
Also Read: U.S. Embraces Bitcoin – India Must Lean In: CoinDCX CEO
